NYT: U.S. Is Proposing to Cut Medicaid’s Drug Payments (Bush Proposal)

http://www.nytimes.com/2006/12/18/washington/18medicaid.html?hp&ex=1166418000&en=f6522c2017b47073&ei=5094&partner=homepage

The Bush administration on Monday will propose sweeping reductions in payments to pharmacies as a way to save money for Medicaid, the health program for more than 50 million low-income people.

The goal is to ensure that Medicaid can get drug discounts similar to those provided to large customers in the private market, including companies like Caremark Rx and Medco Health Solutions that manage drug benefits for people who have health insurance through an employer. Congressional investigators have found that Medicaid pays 35 percent more than the lowest price available in the private market for some commonly used brand-name drugs.

States, which share the cost of Medicaid with the federal government, make the final decision on what pharmacies are paid, subject to federal limits.

The proposed rule would provide new data for states to use in their calculations, redefining the “average manufacturer price” for brand-name and generic drugs.

Consumers would not be directly affected by the proposed changes. But federal officials said they hoped consumers would press for lower drug prices after checking the price list, which will be posted on a Web site.

As long as he sails in the right direction OK. I wonder what the reality behind his proposal will be. His ideas usually end up helping some big business Friend of Bush and hurting the rest of us.

doesn't negotiate prices either.

It merely states (in law) that we will pay the lesser of 12% less than the average wholesale price, or the least amount charged to any other customer.

If he rehired those IRS auditors who had the job of auditing wealthy taxpayers' tax returns then it might just even out. But no, he wouldn't want to offend his friends by making them pay anywhere near their fair share of taxes.


Link: http://blogcritics.org/archives/2006/07/25/172227.php

..... To get around this, Bush defiantly ordered the IRS to make wholesale cuts in the IRS's 345 estate tax lawyers, literally getting rid of half of them, and to also eliminate 17 support personnel in the very department meant to monitor convoluted methods designed to undervalue assets of wealthy taxpayers. As a result of this “end run” around Congress 157 tax lawyer positions at the IRS will be swiftly eliminated within the next two months or so.

why so, Mr. Boosh?